A not-for-profit hematology lab hosts 10,000 visitors in a year. Revenues are $200 per visitor. Fixed operating expenses are $800,000. Variable operating expenses are 40 percent of revenues. Depreciation is $100,000. What is cash flow from operations?

1) $400,000

2) $200,000

3) $600,000

4) $0

5) $100,000

6) $500,000

7) $1,000,000

8) $1,200,000

9) $300,000

10) $800,000